Excise duty exemption under notification 10/97

[Vivek anandhan]

We are going to despatch our product without payment of duty under notification 10/97(Research Instute - Public funded),  whether we have to reverse 5% of duty under the Cenvat Credit Rule, 2004(rule 6)

Can any body explain me.

V.Vekanandhan

Sunbeam Generators Pvt ltd.,

[Snehal Kulkarni]

Yes,

 

You have to reverse an amount ( and not the Duty ) equal to 5% of the Value of the exempted goods, if you have not maintained the seperate account for dutiable and exempted goods.

 

Example : If the Value of the Exempted Goods is Rs 100, then you have to reverse Rs 5.

This will Non Cenvatable and Cost to you. This value will not reflect on the Excise Invoice hence not recoverable from the Customer.

 

[Vivek anandhan]

Thanks  Mr.Mangesh Lokre

[Vivek anandhan]

Thanks  Mr.Mangesh Lokre

[Vivek anandhan]

Thanks  Mr.Mangesh Lokre

AI Summary

Excise duty exemption reversal: prescribed portion of exempted goods' value must be reversed if separate accounts are not maintained. Where goods are cleared duty-exempt under the research-institute notification, the manufacturer must reverse an amount equal to the prescribed percentage of the value of exempted goods under the Cenvat Credit Rules if separate accounts for dutiable and exempted goods are not maintained; that amount is non-cenvatable, constitutes a cost to the manufacturer, and is not reflected on the excise invoice nor recoverable from the customer.